Hospitality

We have acted in an advisory role for hospitality business owners and their lenders on numerous occasions. The ‘behind the scenes’ nature of this work means that our role is usually only known about by the company and/or its lender. Please visit our Restructuring and turnaround page for more information on the services we can provide in this area.

We have also acted as receivers of boutique hotels and luxury lodges. Often these businesses have spectacular locations, but are isolated, and as a result occupancy is low and overheads high. The property boom and easy credit conditions resulted in an over supply of these types of property scattered around the country. Since the credit crunch it has become a buyer’s market and these businesses have become almost impossible to sell.

We have assisted secured creditors by focusing on profitability rather than an immediate exit in a depressed market. This allows the asset to be held until the market improves. This requires the secured creditor to wrest control from the borrower by appointing a receiver. In this situation McDonald Vague appoints an experienced manager and implements strategies to make the operation profitable and at the same time looks for potential buyers.

We have a network of trouble-shooting managers who we can place in a business. It is important that they are incentivised correctly to stay focused by remunerating them based on the bottom line. This will increase turnover and at the same time reduce wastage and pilfering.

McDonald Vague’s specialised skills, contacts and understanding of the industry achieve excellent results for creditors.

Our strengths and hospitality experience

• We have the ability to quickly take control of a situation and deploy resources as necessary
• Our team can manage both the operational and financial aspects
• We are able to quickly identify risks and implement the appropriate controls
• We have an innate understanding of the lender’s needs
• We have extensive knowledge, expertise and technical skills relating to the hospitality sector
• We understand how to work with the media to protect reputation and brand value

Our team has extensive experience managing projects involving:-

• Hotels
• Bars
• Serviced apartments
• Boutique hotels and luxury lodges
• Camping grounds
• Backpackers
• Hostels

Our network of contacts

We have a nationwide network of contacts to call on, including:-

• Valuers
• Real estate agents and resort brokers
• Experienced hotel managers
• International hotel marketing organisations
• Breweries
• Buyers

National resources and capabilities

We have around 16 full-time people on our staff. This includes three Directors and two Associate Directors. We also have a number of experienced consultants that we can call upon as and when required. Our offices are located in Auckland and Hamilton.

As a medium-sized firm which only undertakes business recovery and insolvency work, we can operate independently and seldom have conflicts of interest compared to larger, multi-disciplinary firms.

McDonald Vague is a member firm of the New Zealand Institute of Chartered Accountants (“NZICA”), INSOL (international body of insolvency specialists) and the Forensic Accountants’ Special Interest Group. We adhere to the guidelines, rules, regulations and ethics of these bodies and these associations provide an assurance of independence, service and integrity. Our Partners and staff have a varied background, with many having trained at major international firms such as PwC, KPMG and Deloitte.

We are also members of NZCA (an association of independent Chartered Accountants). We are able to undertake assignments anywhere in New Zealand and can align with a local NZCA firm for assistance. McDonald Vague will still control the assignment and ensure the same high level of expertise and service is maintained. Our clients benefit from the associated firm’s local experience, as well as more cost effective fees as our travel expenses are reduced.